Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value of Financial Instruments [Abstract]

Fair value measurements for assets on a recurring basis

The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the nine months ended September 30, 2017:

	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes In Fair Values Included In Period Income
	(dollars in thousands)
AFS Securities - U.S. government agency notes	$	3,129	$	-	$	3,129	$	-	$	-
Loans held for sale ("LHFS")		4,871		-		4,871		-		139
Mortgage servicing rights ("MSRs")		473		-		-		473		(84	)
Interest-rate lock commitments ("IRLCs")		42		-		42		-		(120	)
Mandatory forward contracts		7		-		7		-		(146	)
Best efforts forward contracts		6		-		6		-		6

The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the year ended December 31, 2016:

	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes In Fair Values Included In Period Income
	(dollars in thousands)
MSRs	$	557	$	-	$	-	$	557	$	66
IRLCs		162		-		162		-		(21	)
Mandatory forward contracts		153		-		153		-		42

Assets measured at fair value on a recurring and nonrecurring basis utilizing level 3 input

The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(dollars in thousands)
September 30, 2017:
MSRs	$	473	Market Approach	Weighted average prepayment speed		3.95	%
December 31, 2016:
MSRs	$	557	Market Approach	Weighted average prepayment speed		3.95	%

For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets:

	September 30, 2017
	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Range of Discount			Weighted Average
	(dollars in thousands)
Impaired loans	$	1,597	$	-	$	-	$	1,597		0% - 33	%		25.5	%
Real estate acquired through foreclosure		691		-		-		691		0% - 26	%		20.9	%

	December 31, 2016
	Carrying Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Range of Discount			Weighted Average
	(dollars in thousands)
Impaired loans	$	2,136	$	-	$	-	$	2,136		0% - 2	%		2.0	%
Real estate acquired through foreclosure		767		-		-		767		0% - 10	%		10.0	%

Estimated fair values of financial instruments

The carrying value and estimated fair value of all financial instruments are summarized in the following tables.  The descriptions of the fair value calculations for AFS securities, LHFS, MSRs, IRLCs, best efforts forward contracts, mandatory forward contracts, impaired loans, and real estate acquired through foreclosure are included in the discussions above.

	September 30, 2017
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	41,635	$	41,635	$	-	$	-	$	41,635
AFS securities		3,129		-		3,129		-		3,129
HTM securities		58,764		8,102		50,857		-		58,959
LHFS		4,871		-		4,871		-		4,871
Loans receivable		643,028		-		-		653,381		653,381
Restricted stock investments		4,699		-		4,699		-		4,699
Accrued interest receivable		2,503		-		2,503		-		2,503
MSRs		473		-		-		473		473
IRLCs		42		-		42		-		42
Mandatory forward contracts		7		-		7		-		7
Best effort forward contracts		6		-		6		-		6
Liabilities:
Deposits		593,492		-		586,594		-		586,594
Borrowings		93,450		-		87,909		-		87,909
Subordinated debentures		20,619		-		-		20,619		20,619
Accrued interest payable		478		-		478		-		478

	December 31, 2016
	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
Assets:	(dollars in thousands)
Cash and cash equivalents	$	67,114	$	67,114	$	-	$	-	$	67,114
HTM securities		62,757		13,165		49,662		-		62,827
LHFS		10,307		-		10,313		-		10,313
Loans receivable		601,309		-		-		602,953		602,953
Restricted stock investments		5,103		-		5,103		-		5,103
Accrued interest receivable		2,249		-		2,249		-		2,249
MSRs		557		-		-		557		557
IRLCs		162		-		162		-		162
Mandatory forward contracts		153		-		153		-		153
Liabilities:
Deposits		571,946		-		572,556		-		572,556
Borrowings		103,500		-		97,961		-		97,961
Subordinated debentures		20,619		-		-		20,619		20,619
Accrued interest payable		538		-		538		-		538